Concho Resources Inc. (NYSE: CXO) bought, sold and also swapped.

Concho said Jan. 18 it launched three separate transactions to prop up its holdings in the southern Delaware Basin and reduce net debt.

Overall, the deals add to Concho’s core in the Delaware and contribute 350 drilling locations—about 200 long-lateral locations in the company’s Southern Delaware.

Concho said it has an agreement to acquire 12,000 net acres in Reeves and Ward counties, Texas. The acreage is adjacent to the company’s North Harpoon prospect and will cost about $360 million including 2.2 million shares of Concho common stock, $150 million in cash and $40 million to carry a portion of the seller’s future drilling costs.

Concho also traded with Clayton Williams Energy Inc. (NYSE: CWEI) to consolidate 21,000 net nonoperated acres into a concentrated, operated position adjacent to the company’s Big Chief prospect in Reeves.

Concho also sold about 14,000 net acres in Loving County, Texas, to Silver Hill Energy Partners II LLC for $290 million in proceeds, with the deal structured as a like-kind exchange.

Concho said the divestiture eliminates about $100 million of lower rate-of-return obligation drilling in 2016. The sale is expected to close during the first quarter of 2016.

“The aggregate impact of these transactions is neutral to CXO's 2016 capital and production outlook,” said Pearce Hammond, analyst with Simmons & Co. International.

Hammond said Concho’s acquisition for 12,000 net acres in Reeves and Ward counties cost about $15,000 per acre.

“The acquired assets appear to be high-quality core acreage situated along the Pecos River. The seller will retain a 20% working interest in the wells,” he said.

Concho’s exchange with Clayton Williams consolidates operated positions and allows Concho to implement longer laterals. The exchange will have no impact to Concho’s daily production.

Hammond said Concho’s divested acreage had about 350 drilling locations.

David Tameron, senior analyst with Wells Fargo Securities, said the transaction cores up Concho’s Delaware holdings. The sale in Loving County values the acreage at about $13,600 per acres.

More Permian Dancing

Clayton Williams said that the acreage swapped with Concho was a net-for-net deal across the company’s Reeves County position.

Substantially all of the acreage subject to the agreement was associated with a farm-out agreement between the company and Chesapeake Energy Corp. (NYSE: CHK). Clayton Williams earned a 75% interest in certain leases and Concho acquired the remaining 25% of the Leases.

As a result of the exchange, Clayton Williams acquired Concho’s 25% working interest in certain leases and Clayton Williams conveyed its 75% working interest in certain leases to Concho.

The company’s acreage position remains at about 65,000 net acres but its working interest increased to 100% throughout most of its largely contiguous acreage block.

Clayton Williams said it also sold acreage in December in Burleson County, Texas, to an undisclosed buyer for $21.8 million cash.

Darren Barbee can be reached at dbarbee@hartenergy.com.